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What Is a SKU? Explained Simply

A SKU is just your own short code for identifying a stock item.

Beginner friendlyPlain EnglishUpdated September 2026
Simple answer

SKU stands for stock keeping unit, but you can forget the fancy name. It is simply a unique code you give an item so you can match the listing to the physical stock.

What to do

1. Keep the format short

Keep this step simple and use the real numbers or evidence you have.

2. Make each code unique

Keep this step simple and use the real numbers or evidence you have.

3. Put the code on or with the item

Keep this step simple and use the real numbers or evidence you have.

4. Use the same code in your stock tracker and listings where useful

Keep this step simple and use the real numbers or evidence you have.

Simple example

“MC-003298” can identify one exact item even if you own three similar black Nike tops.

Common mistake

Do not create codes that rely on remembering what every letter means. Unique and easy to read is enough.

Use MyCost when the numbers start getting messy

MyCost can keep the item cost, storage location, sale and real profit together so you do not have to remember it all.